Market News
- Wall Street finished sharply higher on Tuesday, lifted by Apple, Tesla and other megacap growth stocks after strong retail sales in April eased worries about slowing economic growth as consumers bought motor vehicles amid an improvement in supply and frequented restaurants.
- U.S. Fed will “keep pushing” to tighten U.S. monetary policy until it is clear inflation is declining, Fed Chair Jerome Powell said at an event on Tuesday, and traders are pricing in an 85% chance of a 50-basis point rate hike in June.
- A positive first-quarter earnings season has been overshadowed by worries about the conflict in Ukraine, soaring inflation, COVID-19 lockdowns in China and aggressive policy tightening by central banks.
Market Views
- Asian markets struggled to carry recent gains into a fourth straight session on Wednesday as nagging doubts about inflation and the drag from rate rises crept back in to the global growth outlook. Hang Seng index fell 135 points while Nikkei 225 index rose 191 points.
- A gauge of U.S.-listed Chinese shares soared more than 5% on Tuesday after Vice Premier Liu He gave a public show of support for digital-platform companies after a symposium with the heads of some of China’s largest private firms.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 32,618
Target price:
Protective stop:
Outlook
Price rebounded after forming a Bullish Engulfing reversal candlestick pattern despite violating its previous low support zone. The 20EMA at 32,920 will be the first resistance point and price might have a pullback after hitting the 20EMA. Stochastic is rising but MACD is bearish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 20,455
Target price:
Protective stop:
Outlook
Price rebounded from a low at 19,162. It is now testing its overhead downtrend line that capped price’s rally for a third times this round. It has to surpass this downtrend line for uptrend. Stochastic is weak and MACD is bearish.
Trading Idea.
Buy 19,550 for 20,250 with a stop below 19,200.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,477
Target price:
Protective stop:
Outlook
This index rebounded from the Fibonacci 200% projection level. It is rising to its first resistance point at 20EMA at 12,810. Stochastic is weak and MACD remains bearish with both of its lines below the zero line.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4071
Target price:
Protective stop:
Outlook
Price rebounded after forming a temporary bottom at 3858. It is going to test its overhead 20EMA resistance point at 4132. Stochastic is still weak and MACD remains bearish.
Trading Idea
Sell 4110 with a stop at 4170 for 3920
